EBA proposes new prudential regime for certain investment firms

The European Banking Authority (EBA) launched a consultation in response to the European Commission's call for technical advice on the design of a new prudential regime for all investment firms that are not systemic and bank-like, which is specifically tailored to the needs of investment firms’ different business models and inherent risks. (The EBA previously opined that investment firms that are identified as G-SIIs (currently 9 firms) or O-SIIs (currently none but appropriateness of guidelines is to be reviewed) should be subject to the full CRR/CRD as they currently apply.) The aim of this work is to develop a single, harmonised set of requirements that are reasonably simple, proportionate, and more relevant to the nature of investment business. The consultation runs until 2 February 2017. If you would like to contribute to the response please contact Jennifer Wood.